So far, performance has been strong: As of September, about 60% of store accounts were repurchasing each month, Lewis said.
The launch is an example of the growing popularity of plant-based foods reaching mass markets. Vantage market research revealed in April that the plant-based food market was valued at $40.21 billion in 2021 and is forecast to double to $78.95 billion by 2028.
The same study also found that major supermarket chains are increasing organic and plant-based offerings — and CPG companies are expanding as a result. Riviana Foods has begun offering flavored versions of Minute Rice, while frozen food company CLO-CLO Vegan Foods is launching in Cub grocery stores this fall. Meanwhile, chains like KFC and Chipotle have rolled out plant-based and vegan options.
Casa Verde’s inaugural competition features four products: coconut soup, garbanzos al pastor, lentil mole and red bean pozole. Each comes in a single-serve package that can be microwaved in 60 seconds, or reheated on the stove. Some consumers choose to add meat or a protein to the mix for a tastier meal. Priced at $3.75, Lewis compares Casa Verde’s convenience and affordability as a Latin-flavored alternative to Tasty Bite, a line of ready-to-heat Indian and Asian foods.
“It’s based on that core belief that you don’t need to pay more for good food. Good food should be affordable, it should be easy and it should be for everyone,” Lewis said.
But coming up with healthy recipes has been an iterative process. Flavor profiles have been modified over time based on customer feedback. And processing has changed: for example, tomatoes used in sauces are now peeled before cooking to reduce sodium.
“We went to do a lot of research trials and did a lot of iteration to come back with something that consumers will really love and be true to that promise of affordable wellness,” he said.
Behind the scenes, Casa Verde is part of a multi-layered expansion of a Latin American conglomerate into the US market. Casa Verde is owned by parent company Ilinel Food Company and operated by Engine4Ventures, the product incubator of Latin American food conglomerate Grupo APEX, which is looking to expand its reach into North American markets. Lewis serves as founder of Casa Verde as part of his role as disruptive Chief Growth Officer at Grupo Apex.
When it first launched, Casa Verde was marketed as a direct-to-consumer brand that was also available on Amazon. At that point, Lewis said the focus was to pilot the product and get consumer feedback. The Casa Verde team also conducted taste tests on college campuses, tinkering with flavor profiles to see what resonated.
By spring 2022, it moved into specialty grocery stores, such as Garage Gourmet and Fairway Market in New York City. In June, Casa Verde expanded into independent and specialty foods in California such as Jensen’s and Raley’s. Throughout this process, Lewis and his team collected data on where the product performed best, what price points worked, and what drove consumers to repurchase.
“We did a lot of data mining,” Lewis said. “And now, we have a stronger story, saying ‘Hispanic street is growing rapidly and you need to bring variety to this section.'”
Although Lewis didn’t share investment figures or year-over-year sales numbers, he said Casa Verde has had to work with its production team to meet the new store count, including talking to its investors to t ‘made sure it could support rapid expansion. .
“We’re seeing a lot of acceptance and then a lot of retailers opening their doors,” Lewis said.
Albertson’s, for its part, is placing Casa Verde in the international grocery aisle. Lewis said he’s also seeing more interest in the product with Hispanic Heritage Month in the making. The plan is to continue positioning Casa Verde as a healthy, affordable meal that can fill the gap in Latino flavor profiles, “something that speaks to Latin America and something that is a whole food.”
Casa Verde is by no means alone in seeing growth as a plant-based brand. Julia Perez is vice president of marketing for Owyn, a protein shake that generated more than $60 million in revenue in its first four years and is available at Walmart and Target. Perez said the “plant-based” label implies to shoppers that it’s a health food. She sees the rise in popularity linked to increased awareness of meat-related health concerns, food allergies and sensitivities, as well as cultural influences such as athletes and celebrities sharing their plant-based diets.
“It’s not necessary for people to become vegan or vegetarian,” Perez said. “It’s an effort to eat more plants to be healthier.”
Sylvia Klinger, a Chicago-based dietitian who focuses on outreach to Latino and Hispanic communities with her consulting business Hispanic Food Communication, said many Latino cuisines are traditionally plant-based, with many popular recipes based on beans, rice and vegetables. “We just grew up with that,” she said.
But not everyone has time to cook a full meal for their family every night. And there aren’t necessarily ready-to-eat foods with popular Latino flavors, she said, so having popular options for ready-to-heat meals can appeal to Hispanic shoppers. Klinger said she often sought out Puerto Rican-flavored foods that her 90-year-old mother could heat up herself to no avail.
“When you’re short on time, these things will come in handy and won’t stop you from buying something high in fat, salt and sugar,” she said. “It would be nice to have something Latin that’s safe and healthy.”
Such choices are required regardless of cultural background: Research from Forrester shows that in 2021, 69% of US consumers said they read product labels before buying a product to determine if it is healthy. And 48% read labels to check for all-natural ingredients, up 43% from 2017.
For Casa Verde, Lewis said the product will not be marketed as vegetarian, but “plant-based.” to indicate a healthy option. He grew up in Guatemala and said vegetables were much more of a dietary staple there compared to what he saw after moving to the United States.
“We are not waving a flag to be vegan or vegetarian. It’s just based on the same premise that I grew up with, that you should have more fruits and vegetables on your plate and make it more colorful,” Lewis said.
